April 25, 2005
The Distribution of Income
Max Sawicky notes a little item in the Washington Post:
Detroit Spinning Out: Economic growth is above 4 percent, profits are strong, but pay is not keeping up with inflation. The government reported that hourly wages were up 2.4 percent in the year ended in March, below the 3.1 percent increase in consumer prices. One reason: Workers prefer to take more of their compensation in tax-free benefits, particularly health insurance. With benefits included, inflation-adjusted compensation was up about 0.5 percent, raising the question of who benefited from those 4 percent annual productivity gains...
There's a question? Doesn't the Washington Post have anyone who knows about profits?
Posted by DeLong at April 25, 2005 01:46 PM